Hello traders
I took profit on my long from 1.0260. I entered into a poorly timed short at 1.0380 but exited that trade when the December low at 1.0341 did not break. I went long again at 1.0355 and exited at 1.0425 and shorted at 1.0426. The power of alerts and entry orders. My TP is at the very least 1.0308.
So, just my usual up an down in the high speed forex elevator.
The BOJ will decide the interest rate in less than 48 hours. I have taken a small AUD/JPY short at 97.52 with a stop at 97.90.
The focus at this point should be on next week's FOMC and ECB interest rate decisions.
I am still of the opinion that despite the Euro Zone's tepid economic performance, the ECB may not cut because of sticky and elevated inflation. Or maybe a nominal 0.15 cut.
The FOMC will definitely not cut.
Fundamentally, there is not much that can change the landscape for these two Central Banks, not even the ringmaster in the White House Circus. If I had a dollar for every time he has said the word "tariffs", "kill Obamacare" and his "bigly and beautiful healthcare plan which never materialized", I would have retired by now.
I do hear and LISTEN to him but like his co-president, they are unpredictable because they seem to think that nobody can remember what they said yesterday.
My take is, keep an eye on what counts right now. Trust your charts, the DXY and US10Y. Even if Trumps utterings move the markets, it will still be reflected to no or lesser degree in these ultimate bellwethers for now. In all likelihood we'll stay in the 1.0260-1.0440 range until next week.
Best of luck all.
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